SP
O-Z
WL7
58-2
0080
325
Dev
elop
men
t of I
T an
d IT
ES
O
ffsho
ring
–O
ppor
tuni
ties
for C
ount
ries
The
Wor
ld B
ank
and
Inte
rnat
iona
l Fin
ance
C
orpo
ratio
n –
Glo
bal I
nfor
mat
ion
and
Com
mun
icat
ions
Tec
hnol
ogie
s D
epar
tmen
t
info
Dev
Don
ors’
Mee
ting
19 J
une
2008
This
repo
rt is
sol
ely
for t
he u
se o
f clie
nt p
erso
nnel
. N
o pa
rt of
it m
ay b
e ci
rcul
ated
, qu
oted
, or r
epro
duce
d fo
r dis
tribu
tion
outs
ide
the
clie
nt o
rgan
izat
ion
with
out p
rior
writ
ten
appr
oval
from
McK
inse
y &
Com
pany
. Thi
s m
ater
ial w
as u
sed
by M
cKin
sey
&
Com
pany
dur
ing
an o
ral p
rese
ntat
ion;
it is
not
a c
ompl
ete
reco
rdof
the
disc
ussi
on.
CO
NFI
DE
NTI
AL
SP
O-Z
WL7
58-2
0080
325 1
CO
NTE
NTS
•IT/
ITE
S v
alue
pro
posi
tion
•Cou
ntry
ass
essm
ent
–LR
I des
ign
prin
cipl
es
–In
done
sia
asse
ssm
ent
•Pol
icy
obse
rvat
ions
•Pot
entia
l eco
nom
ic im
pact
•Im
plic
atio
ns fo
r inf
oDev
don
ors
SP
O-Z
WL7
58-2
0080
325 2
*In
clud
es P
hilip
pine
s, C
hina
, Rus
sia,
Eas
tern
Eur
ope,
Irel
and,
Mex
ico;
**
Incl
udes
add
ress
able
mar
kets
in c
urre
ntly
offs
horin
g in
dust
ries
***
Fina
ncia
l yea
rS
ourc
e:M
cKin
sey
Out
sour
cing
& O
ffsho
ring
prac
tice;
McK
inse
y G
loba
l Ins
titut
e; G
artn
er 2
005
data
base
; ID
C; N
AS
SC
OM
Stra
tegi
c R
evie
w 2
007
Pote
ntia
l mar
ket f
or o
ffsho
re IT
, BPO
and
R&
D
serv
ices
is a
t lea
st U
S $4
50 b
illio
n
ES
TIM
ATE
S
Oth
ers*
Indi
a
Glo
bal o
ffsho
re IT
exp
orts
, FY
*** 2
007
US
$ bi
llion
18.0
9.0
Cur
rent
si
ze
~190
-220
Add
ress
able
mar
ket
27.08x
Glo
bal B
PO e
xpor
ts**
, FY
2007
US
$ bi
llion 8.2
9.8
Cur
rent
si
ze
~150
18.08x
Add
ress
able
mar
ket
R&
D/e
ngin
eerin
g se
rvic
es
expo
rts,
FY
2007
US
$ bi
llion 4.6
20.0
5.4-
10.4
Cur
rent
si
ze
~115
-135
Add
ress
able
m
arke
t
10-1
5
10x
SIZE
OF
THE
OFF
SHO
RE
IT, B
PO A
ND
R&
D S
ERVI
CES
MA
RK
ET IS
PR
OJE
CTE
D T
O B
E VE
RY
LAR
GE;
CU
RR
ENTL
Y O
NLY
A S
MA
LL
FRA
CTI
ON
HA
S B
EEN
REA
LIZE
D
SP
O-Z
WL7
58-2
0080
325 3
IT S
ECTO
R G
RO
WTH
HA
S H
AD
PO
SITI
VE E
CO
NO
MIC
IMPA
CT
ON
DEV
ELO
PIN
G N
ATI
ON
S (1
/2)
Indi
aPh
ilipp
ines
•Em
ploy
men
t:Th
e P
hilip
pine
s ra
pidl
y gr
owin
g B
PO
sec
tor e
mpl
oyed
thre
e tim
es
as m
any
peop
le in
200
7 as
in 2
004
100
2004
2007
300
Empl
oyee
s ‘0
00
•GD
P:O
ver t
he la
st te
n ye
ars
IT-IT
ES in
In
dia
has
grow
n fro
m a
nas
cent
sec
tor t
o re
pres
entin
g m
ore
than
5%
of t
he n
atio
n’s
GD
P
1.2
2007
1998
5.4
% o
f GD
P
•Exp
orts
: Las
t yea
r Ind
ia’s
IT-IT
ES
sec
tor
cont
ribut
ed o
ver $
30 b
illion
of t
he n
atio
n’s
expo
rts
$ bi
llion
1.8
1998
31.9
2007
•Em
pow
erm
ent o
f wom
en:W
omen
ac
coun
t for
65
perc
ent o
f the
tota
l pr
ofes
sion
al a
nd te
chni
cal w
orke
rs in
the
Philip
pine
s
SP
O-Z
WL7
58-2
0080
325 4
Mod
el in
puts
and
out
puts
THE
LOC
ATI
ON
REA
DIN
ESS
IND
EX C
OM
PAR
ATI
VELY
ASS
ESSE
S C
OU
NTR
Y C
OM
PETI
TIVE
NES
S IN
TH
E IT
/ITES
SEC
TOR
Sour
ce:M
GI;
Team
ana
lysi
s
Loca
tion
read
ines
s in
dex
Wha
t the
mod
el d
oes
not d
o
•Id
entif
y th
e sp
ecifi
c pr
ojec
ts a
nd th
eir t
imin
g th
at c
ould
impr
ove
attra
ctiv
enes
s of
a c
ount
ry•
Fore
cast
mac
roec
onom
ic o
r soc
ial f
acto
rs•
Ana
lyze
intra
-cou
ntry
var
iatio
n in
attr
activ
enes
s
Purp
ose
of th
e m
odel
Inpu
ts:
•Cou
ntry
spe
cific
da
ta o
n –C
ost
–Tal
ent p
ool
–Key
risk
s–V
endo
r la
ndsc
ape
–Bus
ines
s en
viro
nmen
t–Q
ualit
y of
in
frast
ruct
ure
Out
puts
: •
Ove
rall
inde
x sc
ore
on
read
ines
s fo
r IT/
IT
ES
offs
horin
g•
Inde
x va
lues
on
all 6
inde
x di
men
sion
s•
Can
pro
ject
fo
rwar
d us
ing
exch
ange
rate
, G
DP
and
infla
tion
assu
mpt
ions
•Eva
luat
e re
adin
ess
of
the
coun
try
for I
T/IT
ES
of
fsho
ring
•Pro
vide
initi
al in
sigh
ts
into
whe
re g
aps
exis
t so
that
pol
icie
s ca
n be
pr
oper
ly ta
rget
ed
•Est
imat
e th
e po
tent
ial
impa
ct th
at a
dditi
onal
in
vest
men
tin
infra
stru
ctur
e or
pol
icy
chan
ge c
ould
hav
e on
co
untry
read
ines
s
SP
O-Z
WL7
58-2
0080
325 5
CR
ITER
IA U
SED
IN T
HE
LRI M
OD
ELC
riter
iaSu
b cr
iteria
•M
arke
t Mat
urity
•E
mpl
oyee
s in
IT -
ITE
S in
dust
ry a
s a
% o
f tot
al e
mpl
oym
ent i
n se
rvic
es s
ecto
r •
IT-IT
ES
siz
e (d
omes
tic +
exp
orts
) as
a %
of t
otal
siz
e of
ser
vice
sG
DP
•P
rese
nce
of a
n in
dust
ry a
ssoc
iatio
n•
Ris
k pr
ofile
•R
egul
ator
y ris
ks
•C
ount
ry in
vest
men
t ris
ks•
Dat
a pr
otec
tion
•Ta
lent
•Av
aila
bilit
y•
Suita
bilit
y•
Willi
ngne
ss•
Acc
essi
bilit
y•
Trai
nabi
lity
Det
ail/e
xpla
natio
n•
Cos
t•
Labo
r cos
t•
Infra
stru
ctur
e co
st
•C
orpo
rate
tax
•O
ther
ince
ntiv
es
•W
age,
bon
us, b
enef
its, t
rain
ing
Cos
t•
Tele
com
, rea
l est
ate
and
pow
er s
uppl
y•
Tax
rate
, Tax
hol
iday
•Tr
aini
ng s
ubsi
dies
, Dut
y ex
empt
ions
, Tra
inin
g in
cent
ives
, oth
ers
•E
nviro
nmen
t•
Gov
ernm
ent s
uppo
rt
•Bu
sine
ss a
nd li
ving
env
ironm
ent
•A
cces
sibi
lity
•Li
ving
Env
ironm
ent
•G
over
nmen
t pol
icy
tow
ards
fore
ign
inve
stm
ent,
Flex
ibilit
y of
la
bor l
aws,
cor
rupt
ion,
bur
eauc
ratic
bur
den,
Fle
xibi
lity
of
regu
latio
n•
Ove
rall
busi
ness
env
ironm
ent,
com
patib
ility
of b
usin
ess
ethi
cs•
Tim
e di
ffere
nce
to, t
rave
l tim
e, F
requ
ency
of d
irect
flig
ht
•A
ttrac
tiven
ess
of li
ving
env
ironm
ent,
Mur
ders
/ R
apes
per
ca
pita
, HIV
/ A
ids
per c
apita
•Q
ualit
y of
in
frast
ruct
ure
•Te
leco
m a
nd n
etw
ork
•R
eal e
stat
e
•Tr
ansp
orta
tion
•Po
wer
•To
tal i
nter
natio
nal v
oice
traf
fic, U
ptim
e of
end
-to-e
nd
netw
ork,
EIU
conn
ectiv
ity ra
ting
•To
tal i
nven
tory
of c
lass
a s
pace
s, V
acan
cy ra
te o
f cla
ss
A/B
spa
ces
•R
oad/
Rai
l net
wor
k pe
r cap
ita•
Pow
er o
utag
es in
day
s, P
eak
dem
and
/ P
eak
supp
ly
•S
tabi
lity
of la
ws
and
regu
latio
n, T
rans
pare
ncy
and
fairn
ess
of le
gal s
yste
m, B
urea
ucra
cy
•M
acro
Eco
nom
ic S
tabi
lity,
Cap
ital f
reed
om, C
urre
ncy
fluct
uatio
ns•
Pro
tect
ion
of in
telle
ctua
l pro
perty
•To
tal n
umbe
r of g
radu
ates
in fi
eld
or fi
elds
of i
nter
est
•Q
ualit
y of
the
avai
labl
e gr
adua
tes
•Is
the
indu
stry
attr
activ
e co
mpa
red
to o
ther
job/
care
er o
ptio
ns?
•Is
the
tale
nt c
lose
to fr
om jo
b ce
nter
s an
d w
ould
peo
ple
mov
e•
Are
ther
e sh
ort c
ours
es w
hich
can
incr
ease
sui
tabi
lity?
SP
O-Z
WL7
58-2
0080
325 6
Sour
ce:L
RI M
odel
; Tea
m a
naly
sis
Cos
tTa
lent
pool
Ove
rall
2.1
2.2 2.5
2.2
3.1 4.
4 4.7
4.3
•Key
are
as o
f tal
ent a
nd c
ost a
re fa
vora
ble
•Ind
ones
ia is
per
ceiv
ed to
be
a hi
gh ri
sk c
ount
ry
•In
the
abse
nce
of a
larg
e of
fsho
re in
dust
ry in
Indo
nesi
a, th
e IT
/ITE
S in
dust
ry is
not
mat
ure
•Hig
hest
pot
entia
l in
data
pro
cess
es w
hich
requ
ire g
ener
alis
t ski
lls•L
ack
of la
rge
pool
of a
naly
sts
and
MB
As
limits
the
oppo
rtuni
ties
in k
now
ledg
e se
rvic
es•W
ith a
larg
e en
gine
er p
ool,
ther
e is
sco
pe to
bui
ld th
e IT
ser
vice
s in
dust
ry
BPO
ser
vice
s
Infr
astr
uctu
reEn
viro
n-m
ent
Ris
ksM
atur
ity o
f in
dust
rySe
rvic
e lin
e
3.7
3.9
5.0
3.1 3.5
3.7
3.5
Dat
a pr
oces
ses
Voi
ce p
roce
sses
Kno
wle
dge
serv
ices
IT s
ervi
ces
3.0
13
45
62
Inde
x sc
orin
g: 1
= m
ost a
ttrac
tive
5 =
leas
t attr
activ
e
IND
ON
ESIA
ATT
RA
CTI
VE O
N C
OST
AN
D A
SEG
MEN
T O
F TH
E TA
LEN
T PO
OL
BU
T R
ISK
AN
D B
USI
NES
S EN
VIR
ON
MEN
T IN
DIC
ES A
RE
LOW
SP
O-Z
WL7
58-2
0080
325 7
Sour
ce:L
RI M
odel
; tea
m a
naly
sis
Cos
tTa
lent
pool
Ove
rall
1.5
1.5 2.
1
1.8
4.1
4.5 4.8
4.7
BPO
ser
vice
s
Infr
a-st
ruct
ure
Envi
ron-
men
tR
isks
Mat
urity
of
indu
stry
Serv
ice
line
3.86
3.44
4.20
3.22
3.34 3.64
3.50
Dat
a pr
oces
ses
Voi
ce p
roce
sses
Kno
wle
dge
serv
ices
IT s
ervi
ces
4.05
13
45
62
Inde
x sc
orin
g: 1
= m
ost a
ttrac
tive
5 =
leas
t attr
activ
e
KEN
YA’S
CO
STS
AR
E LO
W, H
OW
EVER
OTH
ER A
REA
S W
ILL
NEE
D T
O B
E A
DD
RES
SED
Key
take
away
s•K
enya
doe
s ve
ry w
ell o
n co
st•L
ow ta
lent
poo
l sco
re re
flect
s re
lativ
e pa
ucity
of u
nive
rsity
gra
ds, m
ay li
mit
pote
ntia
l of t
he
sect
or•I
nfra
stru
ctur
e qu
ality
is a
n im
porta
nt c
once
rn
Key
take
away
s•K
enya
doe
s ve
ry w
ell o
n co
st•L
ow ta
lent
poo
l sco
re re
flect
s re
lativ
e pa
ucity
of u
nive
rsity
gra
ds, m
ay li
mit
pote
ntia
l of t
he
sect
or•I
nfra
stru
ctur
e qu
ality
is a
n im
porta
nt c
once
rn
SP
O-Z
WL7
58-2
0080
325 8
HO
W IN
DO
NES
IA A
ND
KEN
YA C
OM
PAR
E W
ITH
OTH
ER C
OU
NTR
IES
IND
EXED
Sour
ce:T
eam
ana
lysi
s
2008
inde
x; s
corin
g: 1
= m
ost a
ttrac
tive
5 =
leas
t attr
activ
eIn
dia
US
2.2
3.03.
73.
6
Know
ledg
e
2.03.
13.
53.
5
IT
Ove
rall
2.9
1.43.
93.
4
1.0
1.05.
04.
2
3.7 1.
63.7
3.9
1.0
1.03.
14.
12.
71.
04.4
4.5 1.
63.34.
74.
8 1.13.
84.
34.
7
3.3 1.
53.0
4.0
1.9
2.3
1.6
1.5
4.8
4.8
3.7
3.5
2.2
2.1
1.8
2.1
1.5
1.5
2.5
2.2
Cos
t30
%
Tale
nt p
ool
30%
Infr
astr
uctu
re10
%
Envi
ronm
ent
10%
Ris
k10
%
Mat
urity
10%
Crit
eria
and
wei
ghtin
g
1 2 3 4 5 6
Indo
nesi
a Ke
nya
Dat
aVo
ice
Know
ledg
eIT
1.8
1.93.
13.
2
Dat
a
2.3
1.93.
53.
3
Voi
ce
SP
O-Z
WL7
58-2
0080
325 9
75%
Will
ingn
ess
139,
611
22,3
3816
,753
27,9
92
•H
igh
unem
ploy
men
t le
vels
mea
ns
man
y ar
e w
illing
to
mov
e to
find
w
ork
•C
omm
unic
atio
n sk
ills
do n
ot m
atch
the
requ
irem
ents
of t
he
indu
stry
; pro
ficie
ncy
of E
nglis
h sk
ills lo
w•
Qua
lity
of e
duca
tion
is lo
wer
out
side
the
capi
tal r
egio
n•
Edu
catio
nal s
yste
m
theo
retic
al•
Bas
ic p
robl
em
solv
ing
skills
low
•W
ith fe
w c
aree
r op
tions
, in
crea
sing
nu
mbe
r of
peop
le w
ill w
ant
to jo
in th
e in
dust
ry
THO
UG
H T
HE
IND
ON
ESIA
N R
EAD
Y TO
HIR
E PO
OL
IS
SIG
NIF
ICA
NT,
IMPR
OVI
NG
SU
ITA
BIL
ITY
WIL
L IN
CR
EASE
IT
FU
RTH
ER
20%
Suita
bilit
y
80%
Acc
essi
bilit
y
Rea
dy to
hi
re p
ool
Gen
eral
ist
grad
uate
s
•Th
ere
is a
n op
port
unity
to c
reat
e a
pool
of a
dditi
onal
35
,000
peo
ple
as 2
5%
of th
e to
tal g
radu
ates
ar
e tr
aina
ble
•Th
ese
are
only
the
gene
ralis
ts -
anot
her
10,0
00 g
radu
ates
in
busi
ness
and
te
chni
cal r
eady
to
hire
and
14,
000
trai
nabl
e
"The
qua
lity
of th
e ed
ucat
ion
is lo
w in
In
done
sia;
Eng
lish
is
not a
lang
uage
that
th
e st
uden
ts a
re u
sed
to" M
anag
ing
Dire
ctor
of
a re
crui
tmen
t firm
1 Sour
ce:I
nter
view
s
SP
O-Z
WL7
58-2
0080
325
10
25,4
3313
,734
10,9
8715
,260
•Pe
ople
are
w
illing
to
relo
cate
to p
lace
of
wor
k if
give
n th
e op
portu
nity
•G
ood
Eng
lish
lang
uage
ski
lls•
How
ever
sec
tor
spec
ific
skills
gap
s e.
g. p
robl
em
solv
ing
•IT
indu
stry
is
view
ed a
s a
good
car
eer
optio
n an
d gr
adua
tes
are
willi
ng to
join
th
is in
dust
ry
IN K
ENYA
, A L
AR
GE
PER
CEN
TAG
E O
F G
RA
DU
ATE
S C
OU
LD
BE
HIR
EDB
YD
ATA
SER
VIC
ES
"Peo
ple
are
very
co
mfo
rtabl
e co
mm
unic
atin
g in
E
nglis
h, th
is is
an
adva
ntag
e fo
r K
enya
" M
anag
ing
Dire
ctor
of
a B
PO
85%
Will
ingn
ess
60%
Suita
bilit
y
90%
Acc
essi
bilit
y•
Shor
t tra
inin
g co
urse
s to
Impr
ove
skill
s ca
n yi
eld
an
addi
tiona
l 3,0
00
grad
uate
s a
year
•Th
ese
are
only
the
gene
ralis
ts -
anot
her
5,00
0 gr
adua
tes
in
busi
ness
and
te
chni
cal r
eady
to
hire
and
5,0
00
trai
nabl
e
Gen
eral
ist
grad
uate
sR
eady
to
hire
poo
l
1
Sour
ce:I
nter
view
s; te
am a
naly
sis
DA
TA P
RO
CES
SIN
G E
XAM
PLE
SP
O-Z
WL7
58-2
0080
325
11
THER
E IS
PO
TEN
TIA
L TO
CO
NTR
IBU
TE U
SD 4
67 M
ILLI
ON
TO
GD
P B
Y 20
13, A
ND
USD
1.7
BIL
LIO
N T
O G
DP
BY
2018
*As
sum
es 5
000
seat
s in
the
IT/IT
ES in
dust
ry b
y 20
09 w
ith e
ach
seat
con
tribu
ting
~$14
.2 th
ousa
nd to
GD
P**
See
anal
ysis
bel
owSo
urce
:Tea
m a
naly
sis
117
187
243
316
411
534
695
1,33
6
17
Assu
min
g 20
00 s
eats
in 2
009 +6
0%
1,73
6
2018
Assu
min
g 50
00 s
eats
in 2
009
+30%
2009
46114
29
10
71*
73183
11
608
292
1312
467
14
1,02
7
790
1615
Con
trib
utio
n to
GD
P by
IT/IT
ES in
dust
ryM
illion
s of
U.S
. dol
lars
•Val
ue to
eco
nom
y of
a jo
b cr
eate
d =
US
$ 14
,000
**•A
ll en
able
rs fo
r ind
ustry
gro
wth
in p
lace
•Sto
ck o
f wor
kers
dev
elop
ed•G
row
th ra
tes
com
para
ble
to E
aste
rn E
urop
e’s
BP
O in
dust
ry
Ass
umpt
ions
:
PR
OJE
CTE
D N
UM
BE
RS
IT/IT
ES c
ould
co
ntrib
ute
2% to
In
done
sia’
s in
crem
enta
l GD
P fr
om
2012
to 2
013
SP
O-Z
WL7
58-2
0080
325
12So
urce
:tea
m a
naly
sis
97,3
32
26,2
14
4,00
0
1314
1516
1011
2009
12
+60%
17
+30%
2018
Num
ber o
f K
enya
ns in
th
e in
dust
ry
as o
f 200
8
4,00
0
Dire
ct e
mpl
oym
ent b
y B
PO in
dust
ry
Num
ber o
f job
s
Ass
umpt
ions
:•A
ll en
able
rs fo
r ind
ustry
gro
wth
in p
lace
•Sto
ck o
f wor
kers
dev
elop
ed•G
row
th ra
tes
com
para
ble
to E
aste
rn E
urop
e’s
BP
O in
dust
ry
IT/IT
ES H
AS
POTE
NTI
AL
TO C
REA
TE 2
2,00
0 N
EW J
OB
S IN
TH
E B
PO IN
DU
STR
Y B
Y 20
13, A
ND
ALM
OST
95,
000
IN 2
018
PR
OJE
CTE
D N
UM
BE
RS
IT/IT
ES c
ould
con
trib
ute
17%
to K
enya
’s
incr
emen
tal G
DP
from
201
2 to
201
3
SP
O-Z
WL7
58-2
0080
325
13
KEY
MES
SAG
ES A
ND
NEX
T ST
EPS
FOR
IND
ON
ESIA
• Dev
elop
ing
the
IT/IT
ES
offs
hore
ser
vice
sec
tor i
n In
done
sia
coul
d re
sult
in m
eani
ngfu
lly
fast
er e
cono
mic
gro
wth
•Ind
ones
ia h
as re
ason
ably
goo
d po
tent
ial a
nd th
e ba
rrie
rs to
cap
turin
g th
e op
portu
nity
ar
e no
t stru
ctur
al
•With
in th
e sh
ort t
erm
(1-3
yea
rs) I
ndon
esia
can
incr
ease
its
attra
ctiv
enes
s to
com
pani
es
with
in th
e se
ctor
prim
arily
by
addr
essi
ng it
s in
fras
truc
ture
qua
lity,
bus
ines
s en
viro
nmen
t and
risk
per
cept
ion
•To
rem
ain
com
petit
ive
in th
e m
ediu
m to
long
term
the
coun
try n
eeds
to
–Im
prov
e la
bor s
uita
bilit
y fo
r the
poo
l alre
ady
grad
uate
d–
Impr
ove
qual
ity o
f edu
catio
nif
it w
ants
to b
e a
play
er a
t hig
her e
nd o
f the
IT/IT
ES
mar
ket
•We
reco
mm
end
as n
ext s
teps
that
the
WB
eng
age
with
the
coun
try to
:–
Ref
ine
the
asse
ssm
ent
–D
esig
n th
e ro
adm
ap to
sec
tor g
row
th (p
olic
y an
d in
vest
men
ts)
–S
uppo
rt im
plem
enta
tion
as n
eede
d
Sour
ce:T
eam
ana
lysi
s
SP
O-Z
WL7
58-2
0080
325
14
KEY
MES
SAG
ES A
ND
NEX
T ST
EPS
FOR
KEN
YA
•Dev
elop
ing
the
IT/IT
ES
offs
hore
ser
vice
sec
tor i
n K
enya
cou
ld re
sult
in s
igni
fican
tly
fast
er e
cono
mic
gro
wth
(17%
of i
ncre
men
tal G
DP
yea
r-on-
year
201
2-20
13)
•Ken
ya’s
mai
n ba
rrie
r to
capt
urin
g th
e op
portu
nity
, nam
ely
tale
nt p
ool s
ize,
will
be d
iffic
ult
to o
verc
ome
as it
is s
truc
tura
l
•With
in th
e sh
ort t
erm
(1-3
yea
rs) K
enya
can
incr
ease
its
attra
ctiv
enes
s to
com
pani
es
prim
arily
by
addr
essi
ng in
fras
truc
ture
qua
lity,
bus
ines
s en
viro
nmen
t and
risk
perc
eptio
n
•To
rem
ain
com
petit
ive
in th
e m
ediu
m to
long
term
the
coun
try n
eeds
to fi
nd w
ay to
ad
dres
s ta
lent
poo
l iss
ue–
Incr
ease
tale
nt p
ool e
.g.,
tapp
ing
non-
univ
ersi
ty s
ourc
es–
Con
side
r oth
er s
ecto
r str
uctu
res
e.g.
, bec
omin
g th
e E
ast A
frica
regi
onal
hub
for O
&O
–Fi
nd n
iche
mar
ket
•How
ever
, giv
en th
e hi
gh p
oten
tial i
mpa
ct o
f the
sec
tor t
o ec
onom
ic d
evel
opm
ent i
n K
enya
,we
reco
mm
end
as n
ext s
teps
that
the
WB
eng
age
with
the
coun
try to
:–
Ref
ine
the
asse
ssm
ent t
o id
entif
y ho
w to
add
ress
the
key
stru
ctur
al b
arrie
r
SP
O-Z
WL7
58-2
0080
325
15
HO
W C
AN
INFO
DEV
AN
D D
ON
OR
S EN
GA
GE?
Are
aIs
sue/
desc
riptio
nPo
tent
ial i
nfoD
ev /
dono
r rol
e
Inve
stm
ent d
ecis
ion
mak
ing
•Ass
essi
ng re
adin
ess
•For
mul
atin
g a
stra
tegi
c pl
an•F
undi
ng th
e di
agno
stic
stu
dy•A
naly
tics
•Exp
ertis
e in
pro
ject
man
agem
ent
•Ens
ure
ther
e is
a c
ham
pion
rela
tivel
y in
sula
ted
from
pol
itica
l tre
nds
Edu
catio
n &
trai
ning
•Tra
inin
g co
urse
s•C
urric
ulum
revi
sion
s•I
ncre
ased
pla
ces
at u
nive
rsity
•Tap
oth
er ta
lent
sou
rces
•Bro
ader
edu
catio
nal r
efor
ms
•Par
tner
with
priv
ate
sect
or fo
r con
tent
•Coo
rdin
ate
educ
atio
nal r
efor
ms
•Ext
end
for o
ther
soc
ial e
nds
e.g.
to
disa
dvan
tage
d/un
der-r
epre
sent
ed
•Tra
in tr
aine
rs•O
ther
cap
acity
bui
ldin
g ex
erci
ses
Lega
l & re
gula
tory
refo
rm•R
efor
m re
gula
tion
e.g.
–
IP la
ws
–Te
leco
m d
ereg
ulat
ion
–“D
oing
bus
ines
s”fa
ctor
s–
Land
and
title
refo
rm
•Tec
hnic
al a
dvic
e•A
dvis
e on
gov
erna
nce
issu
es
Infra
stru
ctur
e•P
rovi
de in
dust
ry n
eces
sary
tool
s e.
g.–
Rea
l est
ate
–bu
ild IT
par
ks–
Band
wid
th –
lay
cabl
e–
Tran
spor
tatio
n –
impr
ove
road
s,
build
airp
orts
–Po
wer
•Adv
ice
•Fun
ding
Recommended
